In a significant move that signals the growing acceptance of digital currencies in traditional banking, France’s fifth-largest bank, the €863 billion BPCE Group, is preparing to launch Bitcoin and cryptocurrency investment services for its clientele in 2025. This ambitious venture will be executed through its crypto-focused subsidiary, Hexarq, upon receiving the necessary regulatory endorsement from the Autorité des marchés financiers (AMF), France’s financial markets authority.
Hexarq’s Strategic Role in BPCE’s Crypto Expansion
The rollout will occur within the networks of Banque Populaire and Caisse d’Épargne, two major components of BPCE’s banking operations, as reported by The Big Whale. A crucial development in this initiative is Hexarq’s recent acquisition of PSAN (Prestataire de Services sur Actifs Numériques) authorization. This certification, a cornerstone in France’s framework for digital asset service providers, empowers Hexarq to engage legally with the nation’s burgeoning digital asset market.
BPCE to Offer Crypto Services Through Hexarq App
Hexarq stands out as the fourth company and the second bank in France to secure this vital approval, following in the footsteps of SG Forge. This license endows Hexarq with the capacity to hold, buy, sell, and exchange digital assets, thereby expanding BPCE’s financial service offerings. The French banking group plans to deliver these services via a dedicated app developed by Hexarq, specifically tailored for customers within the Banque Populaire and Caisse d’Épargne networks.
Founded in 2021, Hexarq will spearhead BPCE’s foray into the digital asset landscape, marking a significant shift for the group, which has traditionally maintained a low profile in this rapidly evolving sector. Notably, BPCE ranks among the top 10 largest banks in Europe, a testament to its substantial influence in the financial industry.
France Makes History with Crypto Regulation
On a broader scale, France is making waves as the first major European Union economy to invite applications for crypto asset service provider licenses under the pioneering Markets in Crypto Assets (MiCA) regulation. The AMF began accepting applications on July 1, 2024, in anticipation of the MiCA regulations slated to take effect on December 30, 2024. This proactive stance positions France as a frontrunner in establishing robust crypto regulatory frameworks across the European Union.
A knowledgeable insider from the bank explained that by launching this service, BPCE aims to retain assets from existing clients who might otherwise migrate to exchange platforms while also attracting new customers seeking to explore digital currencies. It is worth noting that Natixis, BPCE’s investment banking division, is not currently involved in this cryptocurrency initiative. Instead, it will concentrate on advancing market infrastructure and the tokenization of financial assets. In line with its innovative approach, Natixis participated in the issuance of a €100 million bond on the blockchain by Caisse des Dépôts in November.
This strategic expansion into the realm of digital currencies signifies BPCE’s commitment to staying at the forefront of financial innovation, ultimately offering its clients more diverse investment opportunities in the fast-evolving world of cryptocurrency.
